{"data":{"id":"us-ky/krs-355.2a-516","jurisdiction":"us-ky","citation":"KRS 355.2A-516","heading":"Effect of acceptance of goods -- Notice of default -- Burden of","body":"establishing default after acceptance -- Notice of claim or litigation to person\nanswerable over.\n(1) A lessee must pay rent for any goods accepted in accordance with the lease contract,\nwith due allowance for goods rightfully rejected or not delivered.\n(2) A lessee's acceptance of goods precludes rejection of the goods accepted. In the case\nof a finance lease, if made with knowledge of a nonconformity, acceptance cannot\nbe revoked beca use of it. In any other case, if made with knowledge of a\nnonconformity, acceptance cannot be revoked because of it unless the acceptance\nwas on the reasonable assumption that the nonconformity would be seasonably\ncured. Acceptance does not of itself impai r any other remedy provided by this\narticle or the lease agreement for nonconformity.\n(3) If a tender has been accepted:\n(a) Within a reasonable time after the lessee discovers or should have discovered\nany default, the lessee shall notify the lessor and t he supplier, if any, or be\nbarred from any remedy against the party not notified;\n(b) Except in the case of a consumer lease, within a reasonable time after the\nlessee receives notice of litigation for infringement or the like (KRS 355.2A -\n211) the lessee s hall notify the lessor or be barred from any remedy over for\nliability established by the litigation; and\n(c) The burden is on the lessee to establish any default.\n(4) If a lessee is sued for breach of a warranty or other obligation for which a lessor or a\nsupplier is answerable over the following apply:\n(a) The lessee may give the lessor or the supplier, or both, written notice of the\nlitigation. If the notice states that the person notified may come in and defend\nand that if the person notified does not d o so, that person will be bound in any\naction against that person by the lessee by any determination of fact common\nto the two (2) litigations, then unless the person notified after seasonable\nreceipt of the notice does come in and defend that person is so bound.\n(b) The lessor or the supplier may demand in writing that the lessee turn over\ncontrol of the litigation including settlement if the claim is one for\ninfringement or the like (KRS 355.2A-211) or else be barred from any remedy\nover. If the demand st ates that the lessor or the supplier agrees to bear all\nexpense and to satisfy any adverse judgment, then unless the lessee after\nseasonable receipt of the demand does turn over control the lessee is so\nbarred.\n(5) Subsections (3) and (4) apply to any obli gation of a lessee to hold the lessor or the\nsupplier harmless against infringement or the like (KRS 355.2A-211).","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33412","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"294ff58ac6805e9a134230b2e21827221d890448308250ed166f2c852975bc1e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-515","next":"us-ky/krs-355.2a-517"},"notice":"GroundRules: Original legal text. Not legal advice."}